Currently, some applicants for Medicaid who have a life insurance policy must surrender the policy for an amount far below its actual value in order to be eligible for benefits, at which point the state begins to pay Medicaid expenses for the person. A better option for the individual and the state would be a life settlement contract in which the policy is sold to a third party for more than its cash surrender value but less than its net death benefit, allowing a consumer to use the policy to help pay for long-term care expenses and delay the consumer’s reliance on the Medicaid program.

Life settlement contracts, which currently are regulated by the Texas Department of Insurance, would generate significant, recurring Medicaid savings to the state if the state were able to advise owners of a life insurance policy of the option to convert policies into a long-term care benefit plan instead of abandoning the plan and relying on state assistance. HB 2383 seeks to establish provisions relating to the use of a life settlement contract for the provision of certain long-term care services.

HB 1536: Administrative Hearings to Recover Medicaid Overpayments
Author: Rep. Bobby GuerraThe office of inspector general of the Health and Human Services Commission has a duty to investigate suspicions of fraudulent Medicaid payments. Such investigations have been targeted at clinics with a higher volume of Medicaid claims, and the current procedures have resulted in the withholding of payments for services provided without a final determination on the merit of the claims against the providers, many of which are forced to close clinic doors or turn away patients who would otherwise qualify for Medicaid.

HB 1536 seeks to ensure due process by providing for a final appeal on allegations of fraudulent Medicaid overpayment so that a fair and impartial determination is rendered for both the state and Medicaid providers.

HB 165: Placement Decisions for Children in Foster Care
Author: Rep. Dan FlynnTo ensure that a child placed under the supervision of the Department of Family and Protective Services has the best possible quality of life, the placement options for the child must be considered carefully.